Sherritt enters term sheet with Gillon Capital amid Cuba sanctions pressure

Sherritt International

20/05/2026 14:42

May 20 (Reuters) - Canadian miner Sherritt International S.TO said on Wednesday it has entered into a non-binding term sheet, a preliminary agreement outlining deal terms, with U.S.-based Gillon Capital for a private placement of up to 55% of its common shares.

The placement involves a common share purchase warrant exercisable within nine months, with the exercise price expected to be at a discount to the C$0.11 closing price of Sherritt's common shares on May 15.

The nickel-cobalt miner said U.S. authorities do not oppose Gillon Capital's current talks with the company but any final deal will still require their approval.

Sherritt has come under mounting pressure from U.S. sanctions on its Cuba operations. Since January, the Trump administration has enforced what Sherritt has described as a de facto fuel blockade, threatened military action and expanded sanctions, forcing foreign businesses to leave the country.

On Tuesday, the Toronto-based company said it would not proceed with plans to dissolve its Cuban interests, including a joint venture with Nickel Company S.A., a state-owned Cuban nickel company.

The move reversed a decision announced earlier this month after the U.S. imposed sanctions on the joint venture.

 (Reporting by Varun Sahay in Bengaluru; Editing by Tasim Zahid)

 ((Varun.Sahay@thomsonreuters.com;))